Business Revision Cards

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what two things does a business supply
goods and services
1 of 71
Give two reasons why owning your own business is beneficial
-bigger profits / -you are your own boss / - study a topic you're interested in
2 of 71
Who owns a public sector organisation
the government
3 of 71
if a company is privately owned what is it called
private sector
4 of 71
give an example of a non profit organisation
a charity
5 of 71
give two examples of other aims other than profit that a business can have
to proivde excellent customer service/to beat competition/offer a diverse range of goods and services/to invest in local community projects/to have a great image or reputation
6 of 71
What is a stakeholder
anybody who has an interest in the business in question
7 of 71
what is a 'mission' of a business
its overall objectives or corporate aims
8 of 71
what is a mission statement
a written version of the corporate objectives or corporate aims
9 of 71
other than the purpose of the business, give two other things that are shown on a mission statement
values, strategy, ethical beliefs, standards
10 of 71
what order does the hierarchy of objectives go
mission statement/corporate aims/corporate objectives/functional objectives
11 of 71
the goals of a business as a whole are called the...
corporate objectives
12 of 71
what type of objective is set for different sections of a business
functional objectives
13 of 71
what must all objectives be?
SMART
14 of 71
what does SMART stand for
specific, measurable, agreed, realistic, timely
15 of 71
give four types of objective
profit objective, cash flow objective, survival objective and growth objective
16 of 71
what is revenue
the money a business makes from sales before the costs have been deducted
17 of 71
what is the equation for revenue
number of units sold * the current sales price per unit
18 of 71
what type of costs would the rent be
a fixed cost
19 of 71
give an example of a variable cost
raw material such as packaging
20 of 71
whats the equation for total costs
fixed costs + variable costs
21 of 71
what is profit
the money a business has made once the costs have been deducted
22 of 71
what is the equation for profit
total revenue - total costs
23 of 71
give three reasons why profit is important
good source of finance/a good motivator/can be used to attract investors
24 of 71
what is a social enterprise
a business with a social objective such as funding village projects in Africa
25 of 71
what is unlimited liability
when the owner of a business and the business have the same legal identity. The businesses debts are the personal debts of the business owner.
26 of 71
give an example of a type of business that has unlimited liability
a sole trader
27 of 71
what is limited liability
when the owner of a business and the business have a separate legal identity. The shareholders of this type of company can loose the money they invested in the company
28 of 71
what is a sole trader
a person trading in their own name
29 of 71
what is capital investment
the money invested to set puma business or fund its growth
30 of 71
give four advantages of being a sole trader
more profits/own boss/minimal legal formalities/less form filling
31 of 71
give four disadvantages of being a sole trader
no sickness cover/huge financial risk/unlimited liability/time/limited expertise
32 of 71
what are the two types of limited liability companies
private limited companies/public limited companies
33 of 71
what is a private limited company
people within the company own all the shares, no public shares, they don't quote their share prices on the stock exchange, they're often small family businesses, their name ends in limited, sales of shares may have to be agreed within the company.
34 of 71
whats a public limited organisation
shares sold to the public, share prices are listed on the stock exchanger, shares are freely transferable, their names always end in PLC
35 of 71
In a private limited company who is usually the director
the shareholders
36 of 71
who elects the director of a public limited company
the shareholders
37 of 71
what is the money raised by selling shares called
ordinary share capital
38 of 71
what is the total value of all the shares issued by a company called
market capitalisation
39 of 71
what is the equation for market capitalisation
number of shares issued * current share price
40 of 71
why are new businesses not usually set up as public limited companies
because you need over £50,000 of share capital to be a PLC
41 of 71
what is a shareholder
anyone who owns at least one share in a company
42 of 71
what is the main role of shareholders to companies
to provide funds
43 of 71
give two reasons why someone might buy shares in a company
to achieve capital gain, to get dividends, to be involved with the running of a business, because they believe in the aims and objectives of that business, to help the company survive and grow
44 of 71
whats a dividend
a proportion of the company profits that may be payable to shareholders
45 of 71
give two factors that may affect the demand and supply of shares
speculation, current interest rates, whether there is a strong economy, the performance of a company, current share price
46 of 71
give three market conditions affecting supply and demand
seasonal demand and supply, labour supply, political factors, incomes and economic factors
47 of 71
what is perfect competition
when all firms compete on an equal basis, their products are pretty much identical
48 of 71
whats a oligopoly
where a small number of large firms dominate the market
49 of 71
whats a monopoly
where one business has complete control over the market
50 of 71
whats an interest rate
the cost of borrowing money and the return on saving
51 of 71
what affect is an ageing population having on demand for products
more demand for nurses and doctors, more demand for things such as brain training games, working parents means a higher demand for childcare
52 of 71
what environmental factors may increase business costs
pollution, landfill from packaging. they need to minimise the impact they have join the environment
53 of 71
what does fair trade mean
the business will pay a more fair price to their supplier with the aim of increasing the living standards of their suppliers employees
54 of 71
name three things a manager does
sets objectives/analyse and interpret data/review effectiveness of their decisions/make decisions/appraise employees
55 of 71
whats the difference between managing and leading
managing is telling people what to do and leading is motivating people and inspiring them to do things
56 of 71
if a leader makes decisions on their own, what leadership style have they taken
authoritarian (autocratic)
57 of 71
whats a paternalistic leadership style
the leader consults employees before making decisions and try to persuade them why this is the right decision
58 of 71
if employees are encouraged to take an active role in decision making but the leader makes the final decision, what leadership style is this
democratic
59 of 71
what is laissez-faire leadership
a weak form of leadership where leaders very rarely interfere with the running of a business
60 of 71
what type of workers would you need to have if you took a laissez-fair leadership styleq
a highly motivated team of able workers
61 of 71
what internal factor influences leadership
urgent tasks may need a change in leadership style
62 of 71
what external factors may force a change in leadership
a recession/when the economy is growing/competition
63 of 71
what is the graph that puts leadership styles of a graph called
the tannenbaum schimidt continuum
64 of 71
what are the event stages of the tannenbaum schimidt continuum
tells/sells/suggests/consults/joins/delegates/abdigates
65 of 71
an impoverished style of leadership has...
low concern for workers and low concern for productivity
66 of 71
if you have high concern for people and production what is this called
middle of the road
67 of 71
whats a country club style
too high concern for people and too low concern for productivity
68 of 71
what is produce or perish
high concern for productivity, low concern for workers
69 of 71
give an advantage of a leader who abdicates responsibility
highly motivating
70 of 71
give an disadvantage of a leader who abdicates responsibility
team may not be able to handle the responsibility
71 of 71

Other cards in this set

Card 2

Front

Give two reasons why owning your own business is beneficial

Back

-bigger profits / -you are your own boss / - study a topic you're interested in

Card 3

Front

Who owns a public sector organisation

Back

Preview of the front of card 3

Card 4

Front

if a company is privately owned what is it called

Back

Preview of the front of card 4

Card 5

Front

give an example of a non profit organisation

Back

Preview of the front of card 5
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